Finnish mobile phone maker Nokia remains the most shorted stock among the euro zone's blue chip Euro STOXX 50 index as hedge funds bet the company will post disappointing results on Thursday.
Nokia has about 19 percent of its shares out on loan, according to Markit data, despite a 160 percent jump in the stock price since a low in July.
Nokia, which has fallen behind in the smartphone race against rivals Samsung and Apple, earlier this month flagged a return to underlying profitability after massive cost cuts and stronger sales of Lumia smartphones.
The extreme level of short selling on the stock could spark a short covering rally if the company releases better-than-expected results. Analysts expect Nokia to propose suspending its annual dividend payment for the first time in over 20 years when it unveils the fourth quarter results.